Advertising on cash machine screens is becoming big business for Fife-based company i-design.

Although the fledgling software firm reported increased losses - £656,000, up from £626,000 - turnover is up by 52 per cent from £679,000 to more than £1million.

The company released its maiden results yesterday after it floated on the Alternative Investment Market in July. On admittance to AIM it raised £3.5m and achieved a valuation of £9.5m.

The company claimed a "transformational" year with new clients including HSBC and Alliance Leicester.

Its first big client, Nationwide Building Society, also extended an exclusive contract to 2010.

"The company has established itself as the UK market leader in ATM advertising and we intend to build on this position both in the UK and overseas," said i-design founder and chief executive Ana Stewart.

On the same day Stewart, 38, was celebrated as this year's Emerging Entrepreneur at the Entrepreneurial Exchange's annual dinner in Glasgow.

Stewart's company isn't the only one selling ATM advertising software but it is unique in offering clients a full combination of software, creative design and media sales, which allows its users - large banks and ATM networks - to generate revenue from third party advertisers.

Chairman Jim Faulds, founder of Faulds Advertising and one of Scotland's most experienced ad men, said: "The market for ATM advertising is still emerging and we believe the opportunity for us to establish i-design as the leading ATM advertising solution provider in the UK is within our reach."

The company was founded in 1991 by cash machine software designer Stewart. In 2004 it released its product ATM:ad, a software platform that puts advertising on automated teller machines.

Both Nationwide and Alliance & Leicester have signed up to use ATM:ad to run third-party advertising from other firms, making extra revenue for both themselves and i-design.

Nationwide used an enhanced feature, ATM:ad Insight, to target a campaign for Nivea by gender. HSBC will run its own advertising on its ATM network.

Users of ATMs concerned about the potential annoyance of advertising while they get cash need not worry.

"Any advertising is displayed during 'dead space' in an ATM transaction, when customers are waiting for their cash, card or receipt and it therefore does not extend customer's time at the cash machine," Stewart assures customers.